Golden Mile Resources (ASX:G88) - Managing Director, James Merrillees (right)
Managing Director, James Merrillees (right)
Source: Resources Roadhouse
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  • Golden Mile Resources (G88) has executed a binding agreement to acquire the Yarrambee Project in Western Australia
  • The acquisition will cost the company $600,000 cash, one million company shares, one million options, and a net smelter royalty
  • Golden Mile has also completed a capital raise after receiving commitments to raise $800,000 in proceeds before costs
  • The proceeds will fund activities at the soon-to-be-acquired project and the company’s Benalla and Yuinmery projects
  • Golden Mile Resources is up 1.92 per cent and trading at 5.3 cents per share

Golden Mile Resources (G88) has executed a binding agreement to acquire the Yarrambee Project in Western Australia.

The Yarrambee Project is a regionally significant landholding, situated over the Narndee Igneous Complex (NIC) in the Murchison region. The NIC is considered to be highly prospective for nickel, copper and platinum group elements mineralisation.

With a tenure of roughly 816 square kilometres, the Yarrambee tenement package will make Golden Mile Resources the largest landholder over the NIC. The company’s binding sale and purchase agreement was executed with vendors Nemex Pty Ltd and Bruce Legendre. 

The acquisition will cost Golden Mile $60,000 in cash and one million company shares. The company will also issue one million ten-cent options, which can be exercised within two years of the issue date.

Finally, Golden Mile will also grant the vendors a one per cent net smelter royalty over the Yarrambee Project.

The deal is expected to settle in the next 35 days.

In related news, Golden Mile has completed a capital raise after receiving commitments to raise $800,000 in proceeds before costs. The capital raise was strongly supported by the company’s existing shareholders.

In one tranche, Golden Mile will issue 16 million of its shares at five cents each, with one free attaching option for every two shares subscribed for. The free attaching options will have a ten-cent exercise price, and will expire on September 23, 2023. 

The proceeds will fund an aggressive exploration program at the soon-to-be-acquired Yarrambee Project, consisting of an airborne geophysical survey and drill testing geophysical targets.

Funds will also go towards drilling programs at the company’s Benalla Project and target generation and testing at the Yuinmery Gold Project. Some proceeds may also be put into ongoing project evaluation and working capital purposes. 

The capital raise is expected to finalise on March 19, 2021. 

Golden Mile’s Managing Director, James Merrillees, called the acquisition and capital raise exciting developments for the company as it expands its exploration footprint.

“Modern airborne electromagnetics is an effective tool to quickly screen large areas for significant mineral accumulations, and I look forward to highlighting targets for drill testing in the coming months,” he said.

“We are also pleased to have had strong shareholder support for the capital raising, which sees the company well placed to execute its exploration strategy over the coming months,” he added.

Golden Mile Resources is up 1.92 per cent, trading at 5.3 cents per share at 1:55 pm AEDT.

G88 by the numbers
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